Schumer & Affordable Housing Advocates Demand Reversal; Pledge to Fight Back Against Any Efforts to Cut Critical Housing Funds That NYCHA Relies On

Standing in Chelsea at NYCHA apartments, U.S. Senator Charles E. Schumer local housing advocates from the newly-formed “No Cuts Coalition” and NYCHA Chair Shola Olatoye today voiced their strong opposition to the Trump administration’s proposal to cut $6 billion from the budget of the U.S. Department of Housing and Urban Development (HUD), which would directly hit New York City. Schumer and the advocates will launch a new push against these cuts, which include an estimated 68 percent reduction in HUD’s public housing capital fund and estimated 13 percent reduction in HUD’s public housing operating fund. Schumer will say these cuts only serve to exacerbate NYCHA’s $17 billion capital needs backlog and further intensify the affordability and public health crisis facing residents. Schumer publicly pledged to fight back against any efforts to cut critical housing funding that New York City and countless families rely upon. Schumer said the proposed cuts take specific aim at New York City families who rely on safe, affordable and quality housing as he makes his push.

Schumer was joined by: NYCHA Chair Shola Olatoye and the “No Cuts Coalition,” made up of: Community Voices Heard; Demos; Community Service Society; Legal Aid Society; Reverend Youngblood; New York Communities for Change; United Settlement Houses; DC 37 and Working Families Party.

“Clean, decent and affordable housing is harder and harder to find in places like New York City, which is why we vigorously fight against and beat back the cruel and counterproductive cuts that the Trump budget plans for HUD and NYCHA. NYCHA provides housing to hundreds of thousands of hard working families and seniors. Too many of whom are already suffering from leaky roofs, mold, security issues and other challenges; we should be increasing the federal investments we make in HUD and NYCHA, not taking a meat ax to the affordable housing budget like what the Trump administration is threatening to do,” said U.S. Senator Charles Schumer, who has long been an ardent champion of federal investment in affordable housing.

Schumer added, “Simply put, these are the kinds of cuts that shut out families, displace them, and force them and their children into unpredictable and unsustainable living conditions that eat away at the overall quality of life in this city, costing the system more. Affordable housing in New York City should not be an elusive or deferred dream—housing should be attainable. These Trump cuts would not only add hurdles to city living, but they would build brick walls that will leave so many without a place to call home.”

Afua Atta-Mensah, the #NoCutsCoalition director, said, “Trump's cuts to the HUD budget will harm hundreds of thousands of families across the country. We are fighting against this budget on behalf of these families, our seniors, children, tenants, veterans, workers and more.” Atta-Mensah continued, “We are proud to have Senator Schumer's support in this endeavor and won't stop until we beat back these cuts and get true investments in our communities.”

“President Trump’s budget threatens the stability of families paying rent to live in scarce affordable homes,” Susan Stamler, Executive Director of United Neighborhood Houses, said. “These apartments are part of vibrant communities where more than half a million New Yorkers live, raise children and grow older. United Neighborhood Houses is proud to stand with Sen. Schumer and work as part of the #NoCuts Coalition to fight back against these catastrophic cuts to public housing and the Department of Housing and Urban Development.”

According to the White House budget blueprint released in March, the Trump administration has proposed more than $6 billion in cuts to HUD’s budget in FY2018. Cuts to HUD include:

Public Housing Capital Funding – The FY2018 budget would create for an estimated 68% cut nationally which would bring an estimated $216 million capital cut for NYCHA. This includes expenses such as boiler, elevator and exterior work.

Public Housing Operating Funding – The FY2018 budget would create for an estimated 13% cut nationally which would bring an estimated $100-150 million operating cut for NYCHA. This includes expenses such as basic apartment maintenance.

CDBG - The CDBG program would experience a $3 billion cut from the FY2016 funding level to $0 in FY2018. In New York, the FY2016 allocation was $288,016,281.

HOME – A primary federal funding source that allows States and local governments to create and sustain affordable housing for low-income individuals and families. Home will would experience a $950 million cut from the FY2016 funding level to $0 in FY2018. In New York, the FY2016 allocation was $92,909,944.

CHOICE NEIGHBORHOODS – Elimination of the Choice Neighborhoods program would mean a budget cut of $125 million to $0 in FY2018. It is a critical resource for redevelopment of severely distressed HUD-assisted housing including crime prevention, access to jobs and education. Specifically, this will impact NYCHA who received a planning grant of $300K for NYCHA’s Betances Houses in Mott Haven.

SECTION 4 – Cut of $35 million to $0 in FY2018 of Section 4 capacity building for community development and affordable housing.

Schumer said that cuts to HUD’s public housing budget would also exacerbate NYCHA’s $17 billion capital needs backlog and intensify the public health crisis facing its residents.

According to NYCHA, there are 177,657 apartments in 328 NYCHA developments throughout New York City in 2,547 residential buildings. The developments serve 175,817 families and 403,275 authorized residents. A total of 599,493 New Yorkers are served by NYCHA’s Public Housing and Section 8 Programs. Of the population NYCHA serves, 27 percent of residents are under the age of 18; over 19 percent are 62 or older. The average household income is $23,672 and their average rent is $483/month.

The following tables outline how the President’s proposed budget will impact NYCHA specifically. The data was provided by NYCHA:

New York City Housing Authority Funding Threats

Note: Funding impacts based on the President’s budget request for FY18, subject to Congressional appropriations.

FY18 Funding Summary

Program

FY16

Funding

FY18 Proposed/ Assumed

FY18 National

Cut

NYCHA Cut

Public Housing Capital Fund

$1.9 billion

$600 million

$1.3 billion- 68%

$200+ million loss

Public Housing Operating Fund

$4.5 billion

$3.9 billion

$600 million- 13%

$100-150 million loss

Housing Choice Voucher Program

$19.6 billion

$17.7 billion- renewals

$19.3 billion

$17.4 billion- renewal estimate

($19.2 estimated need for renewals)

$1.8 billion renewal shortfall

(200,000 voucher loss nationally)

Loss of 10,700 vouchers city-wide

Public Housing Capital and Operating Fund numbers based on cuts outlined in HUD Passback from OMB.

FY18 Funding Impacts

Public Housing Capital Fund

Program Area

Impact of Proposed Cuts

Number of People Impacted

Boilers

Faulty or old boilers would not be replaced and heat outages would continue or increase

2,574 people

Elevators

Older elevators would not be replaced, and service interruption would increase

4,069 residents in 20 buildings

Building Exterior Work

Brickwork to prevent leaks and ensure pedestrian safety would not be performed

7,458 residents in 27 buildings

Replacement of Kitchens and Bathrooms

Bathrooms and kitchens that need rehabilitation to make them fully functional would not be renovated

3,611 people in 1,594 apartments

Impacts based on FY18 work planned in NYCHA 5-Year Capital Plan.

Public Housing Operating Fund

Program Area

Impact of Proposed Cuts

Number of People Impacted

Basic Apartment Maintenance

Residents wait time for maintenance would double. Progress in cutting wait time by half would be nullified. Wait time would increase from 5.2 days to 10-15 days.

400,000 people

Complex Apartment Maintenance and Repair

Residents would see wait time more than double as skilled trade work would need to be prioritized differently. Wait time could be as long as 275 days.

400,000 people

Administration/Property Management

Would require elimination of staff positions

1,200 people (11% of total staff)

Impacts based maintenance work orders and staff capacity.

Housing Choice Voucher Program

Program Area

Impact of Proposed Cuts

Number of People Impacted

Voucher Renewals

Loss of vouchers due to insufficient funding for renewals

10,700 households

(7,500 NYCHA, 3,200 HPD)

Impacts based on anticipated funding loss for both NYCHA and HPD and cost per voucher.